CIT Group successfully completed a tender offer, the company said today. Bondholders representing 59.81% of CIT's $1 billion in outstanding floating-rate senior secured notes tendered their bonds by the offer’s expiration date of Aug. 14. The bonds mature today. Despite this success, analysts have strong doubts about CIT’s ability to avoid bankruptcy.
The New York-based bank and business lender recently amended the terms of the tender offer. CIT lowered the minimum threshold required to complete the offer to 58% from 90%. As a result, the firm had enough support to complete it. Morgan Stanley and Bank of America Merrill Lynch were the dealer managers for the offer; D.F. King & Co. served as the information agent.